Posted 2 years ago on Dec. 11, 2013, 12:15 p.m. EST by GirlFriday
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The FHFA has responded by threatening legal action against Richmond or any other city that uses eminent domain to reduce mortgage principals and by threatening to deny credit to people seeking mortgages in those communities. In October, community groups filed a FOIA request seeking information about the nature and substance of the FHFA's exchanges with the financial industry on this issue. The agency never responded, leading the groups to file suit.

"The FHFA has taken an aggressive stance on this issue in a way that has harmed minority communities. The public deserves to know why," said Linda Lye, staff attorney with the ACLU of Northern California.

The complaint, Alliance of Californians for Community Empowerment, et al. v. Federal Housing Finance Agency, was filed in the U.S. District Court for the Northern District of California. It was brought by the ACLU, the ACLU of Northern California, the ACLU of New Jersey, and the Center for Popular Democracy on behalf of a number of community groups across the country.